PAPER A

MINUTES OF A MEETING OF THE COUNCIL HELD AT COUNTY HALL, NEWPORT, ISLE OF WIGHT ON WEDNESDAY 19 FEBRUARY 2003 COMMENCING AT 10.00 AM

Present :

Miss H L Humby (Chairman), Mr B E Abraham, Mr J R Adams, Mr R R Barry, Mr A C Bartlett, Mr J A Bowker, Mr B C Buckle, Mrs T M Butchers, Mr C B W Chapman, Mrs B D Clough, Mr A C Coburn, Mr M J Cunningham, Mr J Effemey, Mr J H Fleming, Mrs B E Foster, Mr E Fox, Mrs D Gardiner, Mr C R Hancock, Mr P G Harris, Mr J F Howe, Mrs M A Jarman, Mr P D Joyce, Mr G S Kendall, Mr D J Knowles, Mrs B Lawson, Mr C H Lillywhite, Mrs M J Lloyd, Mr R G Mazillius, Mr A Mellor, Mrs M J Miller, Mr V J Morey, Mr A J Mundy, Mrs E Oulton, Mr K Pearson, Mr G P Price, Mr H Rees, Mr R C Richards, Mrs S A Smart, Mr I R Stephens, Mr R A Sutton, Mr A A Taylor, Mr A F Tiltman, Mrs J L Wareham, Mr D G Williams, Mrs J White, Mr D T Yates

Apologies :

Mr C M Gauntlett,

72. MINUTES

RESOLVED :

THAT the Minutes of the meeting held on 22 January 2003 be confirmed.

73. PUBLIC QUESTION TIME

Mr Wortham asked an oral question relating to the Neil Newton report on the Music Festival in 2002 – the Leader responded accordingly.

74. CHAIRMAN’S REPORT

The Chairman updated members on the Chairman’s Charity Challenge on 2 March 2003.

75. COUNCIL’S BUDGET AND TREASURY STRATEGY FOR 2003/04

Prior to the debate on this item the Strategic Director of Finance and Information and County Treasurer gave a presentation to the Council on the budget.

Following the presentation it was moved and seconded and

RESOLVED :

THAT Procedure Rule No. 15 (4) be suspended for this item to allow the Leaders of each of the Political Groups to speak for 15 minutes during the debate on the budget

The Leader moved a budget motion (which included recommendations of the Executive held on 12 February 2003) and this was seconded by Mr R R Barry.

Mr Sutton then moved an amendment seconded by Mr Cunningham and this was circulated at the meeting.

Mrs Gardiner then moved an amendment to Mr Sutton’s motion – this amendment was accepted by Mr Sutton and Mr Cunningham to be included in their amendment.

During the debate it was moved and seconded and

RESOLVED :

THAT Procedure Rule No. 15 (4) be further suspended to allow all members to speak for a maximum of 10 minutes during the debate on the budget.

Prior to the vote being taken on the amendment four members asked for a named vote to be recorded in the Minutes in accordance with Procedure Rule No. 18(5).

The voting for the amendment was as follows:

For (16): Councillors Buckle, Coburn, Cunningham, Effemey, Foster, Gardiner, Joyce, Lillywhite, Mellor, Mundy, Oulton, Pearson, Sutton, Taylor, Tiltman and Williams

Against (27): Councillors Adams, Barry, Bartlett, Bowker, Butchers, Chapman, Clough, Fleming, Fox, Hancock, Harris, Howe, Jarman, Kendal, Knowles, Lawson, Lloyd, Mazillius, Miller, Morey, Price, Rees, Richards, Smart, Stephens, Wareham and Yates

The amendment was lost.

The meeting then voted on the original motion and it was

RESOLVED :

(i) That the revised estimates for 2002/03 as set out in Appendix 2 be approved.

(ii) The revenue estimates for 2003/04 be £147,748,000 allocated to Service Units as set out in Appendix 2.

(iii) That a Schools Budget of at least £57,155,001 be set for 2003/4 exclusive of the LSC allocation.

(iv) That the Schools Budget shares be determined by the Director of Education and Community Development within the approved service budget.

(v) That if and when any additional resources are identified, those additional resources up to £500,000 shall be allocated to finance extra social services spending and that the Chief Financial Officer, in consultation with the Resources spokesperson, shall be authorised to approve such additional expenditure when he is confident that those additional resources will be forthcoming.

(vi) That the recommendations of the Executive in respect of the 2003/4 capital programme set out in Appendix 3 be approved and that authority be delegated to the Executive to determine the capital programme within the limit of available resources, having given consideration to the views of Select Committees, and thereafter for the Directors Group to manage the programme from day to day within available resources and subject to any direction from the Executive.

(vii) That the recommendations of the Executive as set out in Appendix 3 in respect of the new CIPFA Code of Practice for Treasury Management, the Treasury Policy Statement, Treasury Management Practices, and Treasury Strategy for the 2003/4 financial year be approved.

(viii) That it be noted that at its meeting on 22 January 2003 the Council calculated the amounts for the year 2003/04 in accordance with regulations made under Section 33(5) of the Local Government Finance Act 1992 (The Tax Base).

(ix) That the amounts now calculated by the Council for the year 2003/04 in accordance with Sections 32 to 36 of the Local Government Act 1992 be as set out in Appendix 1.

(x) That it be noted that for the year 2003/04 the Hampshire Police Authority has stated the following amounts in Precepts issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings below:

Valuation Bands - Precepting Authority
	£
Band A	64.86
Band B	75.67
Band C	86.48
Band D	97.29
Band E	118.91
Band F	140.53
Band G	162.15
Band H	194.58

(xi) THAT, having calculated the aggregate in each case of the amounts at paragraph x) above and paragraph h) of Appendix 1, the Council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby sets the following amounts as the amounts of Council Tax for the year 2003/04 for each of the following categories of dwelling shown over the page :

Council Tax Banding Calculation 2003/04
Including Police Precept
	A	A	B	C	D	E	F	G	H
	(Disabled
	Reduction)
Arreton	628.04	753.65	879.26	1,004.87	1,130.48	1,381.70	1,632.92	1,884.13	2,260.96
Bembridge	635.27	762.33	889.38	1,016.44	1,143.49	1,397.60	1,651.71	1,905.82	2,286.98
Brading	640.04	768.05	896.06	1,024.07	1,152.08	1,408.10	1,664.12	1,920.13	2,304.16
Brighstone	628.78	754.53	880.29	1,006.04	1,131.80	1,383.31	1,634.82	1,886.33	2,263.60
Calbourne	633.27	759.92	886.57	1,013.23	1,139.88	1,393.19	1,646.49	1,899.80	2,279.76
Chale	629.69	755.63	881.57	1,007.51	1,133.45	1,385.33	1,637.21	1,889.08	2,266.90
Cowes	633.37	760.05	886.72	1,013.40	1,140.07	1,393.42	1,646.77	1,900.12	2,280.14
East Cowes	634.62	761.55	888.47	1,015.40	1,142.32	1,396.17	1,650.02	1,903.87	2,284.64
Freshwater	631.07	757.28	883.49	1,009.71	1,135.92	1,388.35	1,640.77	1,893.20	2,271.84
Gatcombe	630.26	756.31	882.36	1,008.41	1,134.46	1,386.56	1,638.66	1,890.77	2,268.92
Godshill	630.08	756.09	882.11	1,008.12	1,134.14	1,386.17	1,638.20	1,890.23	2,268.28
Gurnard	634.29	761.15	888.01	1,014.87	1,141.73	1,395.45	1,649.17	1,902.88	2,283.46
Lake	628.03	753.63	879.24	1,004.84	1,130.45	1,381.66	1,632.87	1,884.08	2,260.90
Nettlestone & Seaview	630.78	756.93	883.09	1,009.24	1,135.40	1,387.71	1,640.02	1,892.33	2,270.80
Newchurch	627.09	752.51	877.93	1,003.35	1,128.77	1,379.61	1,630.45	1,881.28	2,257.54
Niton & Whitwell	628.26	753.91	879.57	1,005.22	1,130.87	1,382.17	1,633.48	1,884.78	2,261.74
Rookley	629.86	755.83	881.80	1,007.77	1,133.74	1,385.68	1,637.62	1,889.57	2,267.48
Sandown	638.66	766.39	894.12	1,021.85	1,149.58	1,405.04	1,660.50	1,915.97	2,299.16
Shalfleet	629.66	755.59	881.52	1,007.45	1,133.38	1,385.24	1,637.10	1,888.97	2,266.76
Shanklin	631.27	757.53	883.78	1,010.04	1,136.29	1,388.80	1,641.31	1,893.82	2,272.58
Shorwell	627.93	753.52	879.11	1,004.69	1,130.28	1,381.45	1,632.63	1,883.80	2,260.56
St Helens	632.37	758.85	885.32	1,011.80	1,138.27	1,391.22	1,644.17	1,897.12	2,276.54
Totland	634.91	761.89	888.88	1,015.86	1,142.84	1,396.80	1,650.77	1,904.73	2,285.68
Ventnor	648.58	778.29	908.01	1,037.72	1,167.44	1,426.87	1,686.30	1,945.73	2,334.88
Wootton	633.17	759.80	886.43	1,013.07	1,139.70	1,392.97	1,646.23	1,899.50	2,279.40
Wroxall	629.71	755.65	881.59	1,007.53	1,133.47	1,385.35	1,637.23	1,889.12	2,266.94
Yarmouth	636.46	763.75	891.05	1,018.34	1,145.63	1,400.21	1,654.80	1,909.38	2,291.26
Unparished	622.94	747.53	872.11	996.70	1,121.29	1,370.47	1,619.64	1,868.82	2,242.58

76. EXECUTIVE

(a) Recommendation From The Executive

Great Access to Great Services

Consideration was given to the above named report and its recommendations, which had arisen from extensive consultation within the Council and, as part of the Best Value project ‘Connecting with the Public’, with a wide range of people and bodies external to the Council. The report and its recommendations had been reviewed by an external consultant and were commended to the Council. Members were informed that there would be significant financial implications. The estimated costs of implementing electronic government were put at around £31 million over 10 years. The Programme Board, the subject of one of the report’s recommendations, would be given authority to commit expenditure only within the budget approved by the Council. Due to these costs, external advice would be taken before further investment was contemplated.

It was noted that the Resources Select Committee had, since the meeting of the Executive, decided that it would be inappropriate for a member of that Select Committee to be on the Programme Board as the Committee may wish to scrutinise the project at a latter date. It was therefore suggested that this position be occupied by another member of the Executive.

RESOLVED :

(i) THAT the Council’s commitment to become a truly customer centred organisation is recognised as part of its core priorities as set out in the Corporate Plan and reflected in the adoption of a vision of ‘Great Access to Great Services’ as part of the proposed Annual Action Plan;

(ii) THAT the Council adopts the following four principles as part of its vision:

· 80% of enquiries should be dealt with at the first point of contact

· all customer facing points should be managed and act in a consistent way;

· there should be a wide choice of methods of contact designed to meet customer needs – these should include electronic and traditional services as appropriate and all relevant services should be available at all service points

· information should only be captured once and then be made available across the organisation and to appropriate partners.

(iii) THAT the Council establishes a member-officer group as a Programme Board as set out on page five (subject to the reference to the Resources Select Committee being deleted and three members from the Executive being appointed) and with the remit identified;

(iv) THAT the Member representatives on the group report back as required to the Executive;

(v) THAT the Head of Paid Service and the Deputy Leader be designated respectively as officer and Member champions of our vision of ‘Great Access to Great Services’.

(b) Executive - Reports Of The Portfolio Holders

(i) The Leader

The Leader reminded members of the work that she had undertaken on the budget.

(ii) The Deputy Leader

The Deputy Leader had no report at this stage for the Council.

(iii) Agenda 21 and Countryside Matters

The Portfolio Holder updated members on additional grants that had been obtained by the Countryside Management Centre.

(iv) Economic Development, UK and EU, Regional Issues

The Portfolio Holder informed members that he would be briefing Directors on the regional issues.

(v) Education and Lifelong Learning

The Portfolio Holder updated members on the budget and that there had been no intention to close libraries.

(vi) Fire, Emergency Planning and Consumer Protection

The Portfolio Holder updated members on the FBU industrial action.

(vii) Resources

The Portfolio Holder had no report at this stage for the Council.

(viii) Social Services and Housing

The Portfolio Holder submitted a written report on a number of issues.

(ix) Tourism and Leisure

The Portfolio Holder updated members on the impact of proposed savings for the Tourism budget.

(x) Transport

The Portfolio Holder updated members on the progress of the Local Transport Plan.

77. SELECT AND REGULATORY COMMITTEES

(a) Reports by Chairman of Select Committees

(i) Co-ordinating Committee

The Chairman indicated that he had nothing to report.

(ii) Economic Development, Planning, Tourism and Leisure Services

The Chairman indicated that he had nothing to report.

(iii) Education, Community Development and Lifelong Learning

The Chairman indicated that he had nothing to report.

(iv) Environment and Transport

The Chairman indicated that Committee had held its development day the previous day.

(v) Fire and Public Safety

The Chairman reported that demonstrations on food hygiene were being organised.

(vi) Resources

The Chairman indicated that he had nothing to report.

(vii) Social Services, Housing and Benefits

The Chairman updated on the progress on scrutinising the Health Authority.

(b) Regulatory Committees

(i) Development Control Committee

No written questions were received.

(ii) Licensing Panel

No written questions were received.

(iii) Regulatory Appeals

No written questions were received.

The meeting closed at 15:10.

CHAIRMAN

Appendix 1

	TOTAL EXPENDITURE AND PARISH PRECEPTS
a)	£235,093,642	being the aggregate of the amounts which the Council estimates for
		the items set out in Section 32(2)[a] to [e] of the Act, which includes
		Parish and Town Council Precepts totalling			£637,642	which are
		detailed at (e) below.
b)	£86,828,185	being the aggregate of the amounts which the Council estimates for
		the items set out in Section 32(3)[a] to [c] of the Act.
c)	£148,265,457	being the amount by which the aggregate at (a) above exceeds the
		aggregate at (b) above, calculated by the Council, in accordance with
		Section 32(4) of the Act, as its budget requirement for the year,
		which includes	£637,642	in respect of Parish and Town Council
		Precepts and a Collection Fund surplus of £120,185.
d)	£96,318,206	being the aggregate of the sums which the Council estimates will be
		payable for the year into its General Fund in respect of redistributed
		Non-Domestic Rates, Revenue Support Grant or additional grant and
		calculated in accordance with the Collection Fund (General)(England)
		Directions 2003 and the Local Authorities (Alteration of Requisite
		Calculations)(England) Regulations 2003.
e)	Parish & Town Council Precepts
	Arreton	9.19
	Bembridge	22.20
	Brading	30.79
	Brighstone	10.51
	Calbourne	18.59
	Chale	12.16
	Cowes	18.78
	East Cowes	21.03
	Freshwater	14.63
	Gatcombe	13.17
	Godshill	12.85
	Gurnard	20.44
	Lake	9.16
	Nettlestone & Seaview	14.11
	Newchurch	7.48
	Niton & Whitwell	9.58
	Rookley	12.45
	Sandown	28.29
	Shalfleet	12.09
	Shanklin	15.00
	Shorwell	8.99
	St Helens	16.98
	Totland	21.55
	Ventnor	46.15
	Wootton	18.41
	Wroxall	12.18
	Yarmouth	24.34
		being the amounts precepted by Parish and Town Councils divided by
		the amounts of their respective Taxbase.
f)	£1,036.73	being the amount at [c] above less the amount at [d] above, all divided
		by the amount of its Taxbase, calculated by the Council in accordance
		with Section 33(1) of the Act as the basic amount of its Council Tax
		for the year.
g)	£1,024.00	being the amount at [c] above net of Parish and Town Council Precepts
		less the amount at d) above, all divided by the amount of its Taxbase
		calculated by the Council in accordance with Section 33(1) of the Act
		as the basic amount of its Council Tax for the year for those parts of
		its area to which no Parish and Town Council Precepts relate.
h)	Part of the Council's Area	£
	Arreton	1,033.19
	Bembridge	1,046.20
	Brading	1,054.79
	Brighstone	1,034.51
	Calbourne	1,042.59
	Chale	1,036.16
	Cowes	1,042.78
	East Cowes	1,045.03
	Freshwater	1,038.63
	Gatcombe	1,037.17
	Godshill	1,036.85
	Gurnard	1,044.44
	Lake	1,033.16
	Nettlestone & Seaview	1,038.11
	Newchurch	1,031.48
	Niton & Whitwell	1,033.58
	Rookley	1,036.45
	Sandown	1,052.29
	Shalfleet	1,036.09
	Shanklin	1,039.00
	Shorwell	1,032.99
	St Helens	1,040.98
	Totland	1,045.55
	Ventnor	1,070.15
	Wootton	1,042.41
	Wroxall	1,036.18
	Yarmouth	1,048.34
	Unparished	1,024.00
	being the amounts given by adding to the amount at (g) above the amounts of the Parish and Town
	Council Precepts relating to dwellings in those parts of the Council's area contained at (e) above,
	calculated by the Council, in accordance with Section 34(3) of the Act, as the basic amounts of its
	Council Tax for the year for dwellings in those parts of its area which are parished.
I)	Valuation Bands - Parts of the Council's Area
	As detailed below, the amounts given by multiplying the amounts at paragraph (h) above by the
	number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed
	in a particular valuation band divided by the number which in that proportion is applicable to dwellings
	listed in valuation band, calculated by the Council in accordance with section 36(1) of the Act, as the
	amounts to be taken into account for the year in respect of categories of dwellings listed in different
	valuation bands.

Council Tax Banding Calculation 2003/04
Excluding Police Precept (Appendix 7)
	A	A	B	C	D	E	F	G	H
	(Disabled
	Reduction)
Arreton	573.99	688.79	803.59	918.39	1,033.19	1,262.79	1,492.39	1,721.98	2,066.38
Bembridge	581.22	697.47	813.71	929.96	1,046.20	1,278.69	1,511.18	1,743.67	2,092.40
Brading	585.99	703.19	820.39	937.59	1,054.79	1,289.19	1,523.59	1,757.98	2,109.58
Brighstone	574.73	689.67	804.62	919.56	1,034.51	1,264.40	1,494.29	1,724.18	2,069.02
Calbourne	579.22	695.06	810.90	926.75	1,042.59	1,274.28	1,505.96	1,737.65	2,085.18
Chale	575.64	690.77	805.90	921.03	1,036.16	1,266.42	1,496.68	1,726.93	2,072.32
Cowes	579.32	695.19	811.05	926.92	1,042.78	1,274.51	1,506.24	1,737.97	2,085.56
East Cowes	580.57	696.69	812.80	928.92	1,045.03	1,277.26	1,509.49	1,741.72	2,090.06
Freshwater	577.02	692.42	807.82	923.23	1,038.63	1,269.44	1,500.24	1,731.05	2,077.26
Gatcombe	576.21	691.45	806.69	921.93	1,037.17	1,267.65	1,498.13	1,728.62	2,074.34
Godshill	576.03	691.23	806.44	921.64	1,036.85	1,267.26	1,497.67	1,728.08	2,073.70
Gurnard	580.24	696.29	812.34	928.39	1,044.44	1,276.54	1,508.64	1,740.73	2,088.88
Lake	573.98	688.77	803.57	918.36	1,033.16	1,262.75	1,492.34	1,721.93	2,066.32
Nettlestone & Seaview	576.73	692.07	807.42	922.76	1,038.11	1,268.80	1,499.49	1,730.18	2,076.22
Newchurch	573.04	687.65	802.26	916.87	1,031.48	1,260.70	1,489.92	1,719.13	2,062.96
Niton & Whitwell	574.21	689.05	803.90	918.74	1,033.58	1,263.26	1,492.95	1,722.63	2,067.16
Rookley	575.81	690.97	806.13	921.29	1,036.45	1,266.77	1,497.09	1,727.42	2,072.90
Sandown	584.61	701.53	818.45	935.37	1,052.29	1,286.13	1,519.97	1,753.82	2,104.58
Shalfleet	575.61	690.73	805.85	920.97	1,036.09	1,266.33	1,496.57	1,726.82	2,072.18
Shanklin	577.22	692.67	808.11	923.56	1,039.00	1,269.89	1,500.78	1,731.67	2,078.00
Shorwell	573.88	688.66	803.44	918.21	1,032.99	1,262.54	1,492.10	1,721.65	2,065.98
St Helens	578.32	693.99	809.65	925.32	1,040.98	1,272.31	1,503.64	1,734.97	2,081.96
Totland	580.86	697.03	813.21	929.38	1,045.55	1,277.89	1,510.24	1,742.58	2,091.10
Ventnor	594.53	713.43	832.34	951.24	1,070.15	1,307.96	1,545.77	1,783.58	2,140.30
Wootton	579.12	694.94	810.76	926.59	1,042.41	1,274.06	1,505.70	1,737.35	2,084.82
Wroxall	575.66	690.79	805.92	921.05	1,036.18	1,266.44	1,496.70	1,726.97	2,072.36
Yarmouth	582.41	698.89	815.38	931.86	1,048.34	1,281.30	1,514.27	1,747.23	2,096.68
Unparished	568.89	682.67	796.44	910.22	1,024.00	1,251.56	1,479.11	1,706.67	2,048.00

								Appendix 2
	Revised 2002-03	Base 2003-04	Efficiency savings	Income generation	Maintaining existing levels	Service improve-ment	Service reduction	Draft budget 2003-04
	£000	£000	£000	£000	£000	£000	£000	£000
Housing benefits etc.	3,292.0	4,974.5	-392.0		35.0		-250.0	4,367.5
Education	58,082.3	63,700.0			484.0	51.0	-330.0	63,905.0
Community Development	6,807.5	6,193.8	45.0				-189.0	6,049.8
Personnel & Training	747.9	794.1						794.1
Policy & Communications	1,748.6	1,577.5			12.0		-79.0	1,510.5
Economic Devel-opment	557.0	432.1						432.1
Select Committee Support	300.6	328.0	-9.0					319.0
Corporate & Environment Directorate	433.1	450.5						450.5
Legal & Democratic	705.3	732.9		-49.0		30.0	-7.0	706.9
Property Services	313.0	325.4			10.0		-49.0	286.4
Planning	1,439.9	1,549.9	-50.0					1,499.9
Engineering Services	12,404.0	12,599.9		-500.0	10.0		-248.0	11,861.9
Finance & Business	2,718.8	2,927.1			47.0	25.0	-90.0	2,909.1
ICT	1,634.8	1,224.8				200.0		1,424.8
Consumer Protection	1,257.2	1,237.8		-58.0	30.0		-4.0	1,205.8
Tourism	1,142.6	1,179.4						1,179.4
Fire & Rescue	4,813.2	4,872.3			160.0	18.0		5,050.3
Emergency Planning	46.7	53.0						53.0
Social Services	26,981.5	28,773.7			2,277.0		-207.0	30,843.7
Housing	1,008.6	1,094.1					-25.0	1,069.1
Building Maintenance	1,108.5	1,127.5						1,127.5
Precepts etc.	1,544.9	1,680.3						1,680.3
Capital Financing	6,825.7	8,977.8						8,977.8
Other Financing	-2,502.9	43.9						43.9
	133,410.7	146,850.0	-406.0	-607.0	3,065.0	324.0	-1,478.0	147,748.0
Revenue Support Grant	-48,408.5							-56,057.7
Business Rates	-39,822.4		Council Tax Band D			£1,024.00		-40,260.5
Council Tax	-44,762.1		Increase on 2002-03 (%)			14.32		-51,429.8
Withdrawal from General Reserve	417.7		Increase per week, Band D			£2.46		0.0
General Reserve brought forward	2485.4		Increase per week, Band C			£2.19		2,067.7
General Reserve at year end	2,067.7							2,067.7

Appendix 3

EXECUTIVE MINUTE OF 12^th FEBRUARY 2003

186. REPORT OF THE PORTFOLIO HOLDER FOR RESOURCES

(a) Revenue Support Grant Settlement, The Island Council Budget for 2003/04, Council Tax 2003/04 and Forward Plan to 2005/06

A revised version of the report had been sent to members prior to the meeting.

Members received details of the Government’s final Settlement for 2003/04. There had been a major change in the local government finance system for 2003/4 that had resulted in a major shift in resources away from the South East of England. Following representations to the Minister of State for Local Government and the Regions, Nick Raynsford MP, a significant change from the consultation process had been achieved. This would result in an improved settlement in 2003-04 to just under £1 million (due to the temporary protection provided by the 3½% grant floor in the original proposals). Beyond next year the Council would eventually be £4.5 million per annum better off.

However, the general transfer of resources away from the South East remained an issue, with the effect in 2003/4 of a 9% Council Tax increase due to the system change alone, notwithstanding the restoration of the Area Cost Adjustment. There remained therefore, a substantial loss of grant compared to the average local authority.

The Council would now receive a 5.4% cash increase in grant and business rates in 2003/4. The increase in the Council’s Formula Spending Share was greater than this at 7.6%, so that the effect on Council Tax (which finances only part of spending) would produce a far greater percentage increase in Council Tax.

The Portfolio Holder stated his intention to propose that the Council Tax for services for 2003/04 be set at £1024 for band D taxpayers, an increase of 14.32% and that the draft recommendations be noted and put to Full Council.

RESOLVED TO RECOMMEND TO COUNCIL :

(i) THAT the revenue estimates for 2003/04 be £148,028,000 after making the changes set out in Appendix 4 of the report

(ii) THAT the Council set a Schools Budget of at least £57,155,001 for 2003-04 exclusive of the Learning Skills Council allocation

(iii) THAT the Schools Budget shares be determined by the Strategic Director of Education and Community Development within the approved service budget.

(iv) THAT authority be delegated to the Executive to determine the initial capital programme within the limit of available capital resources and having given consideration to the views of Select Committees; and thereafter for the Directors Group to manage the programme from day to day within available resources and subject to any direction from the Executive.

(b) Capital Programme 2003/04

Consideration was given to the recommendations of the Directors Group in respect of capital expenditure bids and capital resources for the 2003/04 financial year. These had been analysed on the basis of the scoring mechanism in the Council’s approved capital strategy.

This was the second year of the Governments Single Capital Pot proposals for the capital programme. These allocations now constituted the Single Capital Pot, and were not ring fenced. The Council had the discretion to use it as it chose. However, service plans as submitted to individual Government Departments such as Education, Housing and Transport meant that the Council was inhibited in the use of this discretion if it was to maintain current levels of Annual Capital Guidelines.

RESOLVED TO RECOMMEND TO COUNCIL :

(i) THAT the Education and Highways capital programmes be determined within their respective Annual Capital Guidelines.

(ii) THT Officers proceed with a Housing Investment Programme consistent with the Housing Annual Capital Guideline and that further investment in Housing be considered in due course having regard to available resources.

(iii) THAT the Annual Capital Guideline of £105,000 relating to Social Services be used in accordance with a programme to be determined by the Strategic Director for Social Services and Housing.

(iv) THAT the bids contained at Appendix B attached to the report be approved, in accordance with the recommendations of the Directors Group.

(v) THAT Coast Protection Schemes proceed on the basis of DEFRA approval, funded by SCA and Government Grant.

(vi) THAT any further SCA received in respect of specific schemes be approved subject to release by the Directors Group.

(vii) THAT the acquisition of plant and equipment by operating lease be considered where it would be cost effective to do so and where sufficient revenue resources exist to fund the leasing premiums and any other associated costs. Such leases would be made centrally through the Council’s Finance Unit.

(c) Code of Practice for Treasury Management and Treasury Strategy 2003/04

The Portfolio Holder for Resources presented the report on a revised Code of Practice for Treasury Management in the Public Sector produced by the Chartered Institute of Public Finance and Accountancy. A new Treasury Management Policy Statement focused on the risk implications of the organisation and committed the Authority to best value in treasury management.

Consideration was also given to the Treasury Strategy for the 2003/04 financial year which proposed a strategy for dealing with the management of all money and capital relating to the funding resources of the Council.

RESOLVED TO RECOMMEND TO COUNCIL :

(i) THAT to conform with the new Code of Practice, it was recommended that the Isle of Wight Council adopts the key recommendations of CIPFA’s Treasury Management in the Public Services Code of Practice.

(ii) THAT in accordance with the above, a Treasury Management Policy Statement, as set out as Appendix A attached to the report be agreed, stating the policies and objectives of its treasury management activities, and that suitable Treasury Management Practices as are adopted, as set out in Appendix B attached to the report, setting out the manner in which the organisation would seek to achieve those policies and objectives, and prescribing how it would manage and control those activities. The content of the Policy Statement and Treasury Management Practices would follow the recommendations as contained in the code.

(iii) THAT the Treasury Strategy for the 2003/04 financial year as contained at Appendix C as attached to the report be approved.

(iv) THAT the Executive would receive reports on its policy practices and activities, including as a minimum, an annual strategy in advance of any year and an annual report after the close of each financial year. Such reports would be consistent with its agreed Treasury Management Practices.

(v) THAT the Executive would responsibility for the implementation and monitoring of its treasury activities and practices. The Chief Financial Officer would have delegated authority to act in accordance with the Policy Statement, the Treasury Management Practices and with Chartered Institute of Public Finance and Accountancy’s Standard of Professional Practice on Treasury Management

(vi) THAT the above would be consistent with existing financial regulations and delegated authority and would be incorporated into the latter document.